Sometimes, beating expectations isn't enough. Just ask The Trade Desk.

Shares of the advertising technology company took a nosedive in Wednesday's extended session, even after the company reported solid fourth-quarter results. The problem? A first-quarter revenue outlook that came in lighter than Wall Street was hoping for.

Let's break it down. For Q4, The Trade Desk posted earnings of 59 cents per share, edging out the consensus estimate of 58 cents. Revenue came in at $846.79 million, also beating the Street's call for $840.46 million and marking a healthy jump from $741.01 million in the same quarter last year.

So far, so good. The company also shared some full-year highlights, noting it facilitated $13.4 billion in gross ad spend in 2025 and maintained a customer retention rate above 95%.

"The Trade Desk delivered $2.9 billion in revenue in 2025 while continuing to generate significant profitability and cash flow," said CEO Jeff Green. "We executed against a backdrop of macro uncertainty while making some of the most meaningful upgrades in our company's history."

But then came the guidance. For the current quarter, The Trade Desk expects revenue to be more than $678 million. That's a problem because analysts were looking for about $689.48 million. In the world of high-growth tech stocks, missing the top-line forecast for the quarter ahead is often a cardinal sin, no matter how strong the prior quarter was.

The market's verdict was swift and severe. According to market data, The Trade Desk stock plummeted 14.67% to $21.47 in after-hours trading. It's a classic case of a stock getting punished for what's next, not rewarded for what just happened.